Peter Bernstein: Telcos and cable companies should deprivatize local infrastructure

Peter Bernstein correctly notes the telco/cable duopoly doesn't want to invest in infrastructure, especially over the "last mile" or two before it reaches the subscriber. Instead, telcos and cable companies want to deliver -- and bill -- for broadband-based services -- TV, voice or Internet access. Bernstein proposes the telcos and cables companies sell off their local infrastructures to local governmental entities to be operated as public utilities:

Telcos and cable companies don't really want to install, manage and maintain “plumbing.” The days when customer control was asserted because access to all services came through a monopoly access network ended with the mass adoption of the Internet. Voice over IP and wireless are just the nails in the coffin.

Why not have the service providers divest their outside plant and local switches? Local or regional authorities could regulate them and, perish the thought, really do the job.

FCC to retest white spaces devices

The Federal Communications Commission will retest several prototype devices developed by a high tech consortium to transmit long range wireless broadband over unused portions of the TV broadcast spectrum called "white spaces," Broadcasting & Cable reports. The devices failed testing earlier this year to determine if they would interfere with TV and wireless microphone signals.

The devices developed by the White Spaces Coalition, which includes Microsoft, Google, Dell, HP, Intel, Earthlink and Phillips represent a potentially "disruptive technology" that can bypass the telco/cable duopoly and bring broadband to areas unserved by telcos and cable companies.

AT&T signals end of wireline copper-cable based system outside of urban areas

AT&T appears to be moving toward a wireless future outside of urban centers where the telco is upgrading its wireline plant and deploying its hybrid fiber/copper Project Lightspeed/U-Verse equipment. AT&T is currently test deploying fixed terrestrial WiMAX broadband in parts of Alaska and 22 other regions in the lower 48 states, apparently as an alternative to making upgrades to its wireline copper cable plant or replacing the copper with fiber in order to provide broadband-based services.

This week, an AT&T executive disclosed Ma Bell plans to ultimately shut down its existing voice network and replace it with a VOIP (Voice Over Internet Protocol) system in metro areas where U-Verse is being deployed.

Those not in these areas might have to wait a long time to get U-Verse VOIP service, Ralph de la Vega, AT&T's group president, regional telecommunications and entertainment, told Investor's Business Daily. Taken in combination with AT&T's move into fixed terrestrial wireless in less densely populated parts of its service area where U-Verse isn't present, it's unlikely they'll ever be offered wireline-based VOIP. All broadband-based services will likely be delivered via fixed terrestrial wireless as the aging copper cable plant and central offices built for the era of analog, plain old telephone service (POTS) are dismantled.

Sen. Kerry deplores 'unacceptable" state of U.S. broadband access

"It’s almost hard to wrap your head around the fact that 7 years into this century, more Americans than not have either no Internet access at all or are still stuck on dial-up. It seems like so long ago that the buzzword was the “information super-highway,” but much of America is still bouncing down a country lane. That is just unacceptable."

WISPs endeavor to provide needed broadband "third pipe" in El Dorado County

The pathetic state of wireline broadband Internet access in El Dorado County, California has spawned locally based Wireless Internet Service Providers (WISPs) to provide a much needed "third pipe" for county residents and small businesses who have been stiff armed for years by AT&T and Comcast.

Startup Remotely Located run by Jason and Jennifer Wilson is deploying Wi-Fi based service using both directional and non-directional transmission technology. Remotely Located is serving areas deprived of wireline broadband service in the Mosquito/Swansboro Country area and has recently expanded into West Camino and your blogger's neighborhood.

Sierra Advantage emerged out of the bankruptcy earlier this year of one of El Dorado County's first ISPs, Direct Connect. According to the WISP's service area map, it covers my area. Not quite yet, according to Brett Patterson, director of sales for Shingle Springs-based Sierra Advantage. "We continue to build out our network and get closer each week to offering you service," Patterson wrote in an email yesterday. "Soon we will have additional equipment up in your area. There are some very exciting, positive changes coming for us regarding our Internet services."

My hat's off to these WISPs. Providing fixed terrestrial wireless Internet access in El Dorado County's rugged terrain where steep canyons and tall trees create obstacles for wireless signals is no easy feat.

Aside from overcoming these technological hurdles and providing reliable service at advertised throughput speeds, a key challenge as they add customers will be obtaining sufficient backhaul connections to the Internet -- wireline circuits capable of providing large amounts of bandwidth -- to accomodate the growth. Subscribers won't be pleased if a bandwidth traffic jam at the backhaul makes their speeds slow to a crawl and drag with the high latency that afflicts substandard satellite-based Internet access.

Readers who subscribe to services offered by these WISPS are invited to share their experiences and satisfaction with them by posting comments to this post.

Telcos protest California PUC's draft build out requirements

When telcos advocated the enactment of California's Digital Infrastructure and Video Competition Act of 2006, they argued it would create a more competitive marketplace and speed the deployment of broadband-based telecommunications services to consumers.

However, judging from their recently filed comments on the California Public Utilities Commission's proposed rules implementing the statute's build out requirements, telcos could hardly be described as in a hurry to expand their systems and heartily embracing an open, competitive market.

They protest draft rules that would require franchisees to include "clearly stated build-out milestones " that "demonstrate a serious and realistic planning effort." In addition, the draft rules would require franchisees to "clearly state the constraints affecting the build-out" and "clearly delineate and explain" areas within the franchisee's service area that pose "substantially higher" costs.

The small telcos don't want to be held to the same build out requirements as the larger players like AT&T and Verizon. And the big guys don't want to provide customer data by census tract or report on how they are utilizing wireless technology to deliver broadband services.

One might think broadband providers would support regulation that actually encourages them to offer more services to greater numbers of customers. Nearly all other regulated industries desire this and typically complain regulation constrains their ability to offer new products and services to larger numbers of customers. But it's just the opposite in the perverse broadband marketplace. The providers want regulation that allows them to limit rather than expand their services and serve fewer rather than more customers. While providers may think less is more, less is truly less and explains why the United States is rapidly falling behind other developed parts of the world when it comes to broadband access and choices.